Stock Price Movement and Market Context
On 1 December 2025, Agarwal Industrial Corporation's share price touched Rs.762, its lowest level in the past year. This price point reflects a notable underperformance relative to its sector and the broader market indices. The stock's day change registered a decline of 1.35%, underperforming the petrochemicals sector by 1.09% on the same day.
The broader market, represented by the Sensex, experienced volatility on the same day. After opening 359.25 points higher, the Sensex fell by 424.02 points, closing at 85,641.90, a marginal decline of 0.08%. Despite this, the Sensex remains close to its 52-week high of 86,055.86, trading just 0.48% below that peak. The index is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average, signalling underlying market strength. Small-cap stocks led the market gains, with the BSE Small Cap index rising by 0.05%.
In contrast, Agarwal Industrial Corporation is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure on the stock price over multiple time horizons.
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Financial Performance and Profitability Trends
Over the past year, Agarwal Industrial Corporation's stock has recorded a return of -35.77%, contrasting with the Sensex's positive return of 7.32% over the same period. The stock's 52-week high was Rs.1,383.15, highlighting the extent of the recent decline.
The company has reported negative results for two consecutive quarters, with earnings per share (EPS) showing a decline of 7.98% in the latest quarter. The quarterly profit after tax (PAT) stood at Rs.11.99 crores, reflecting a reduction of 46.5% compared to the average of the previous four quarters. This contraction in profitability has contributed to the subdued market sentiment surrounding the stock.
Return on capital employed (ROCE) for the half-year period is recorded at 12.30%, which is among the lower levels for the company. Additionally, the operating profit to interest coverage ratio for the quarter is at 4.12 times, indicating the company's capacity to meet interest obligations remains intact but at a relatively modest level.
Despite these challenges, the company maintains a low debt to EBITDA ratio of 1.26 times, suggesting a manageable debt burden relative to earnings before interest, taxes, depreciation, and amortisation.
Shareholding and Market Perception
Domestic mutual funds currently hold no stake in Agarwal Industrial Corporation, a notable point given their capacity for detailed company research. This absence of institutional holding may reflect a cautious stance towards the stock's current valuation and business outlook.
Long-term performance metrics also indicate underperformance relative to broader market indices. The stock has lagged behind the BSE500 index over the past three years, one year, and three months, underscoring persistent challenges in generating returns for shareholders.
Growth and Valuation Metrics
On a positive note, the company has demonstrated healthy long-term growth in net sales, with an annual growth rate of 25.24%. This suggests that revenue generation has expanded steadily despite recent profit pressures.
The company’s return on capital employed (ROCE) stands at 11.9%, and it maintains an enterprise value to capital employed ratio of 1.5, indicating a valuation that is attractive relative to its capital base. The stock is trading at a discount compared to the average historical valuations of its peers within the petrochemicals sector.
However, profit figures have declined by 32.4% over the past year, aligning with the downward trend in the stock price and reflecting the broader earnings challenges faced by the company.
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Summary of Key Indicators
Agarwal Industrial Corporation’s current stock price of Rs.762 represents a significant decline from its 52-week high of Rs.1,383.15. The stock’s performance over the past year has been subdued, with returns of -35.77% contrasting with the broader market’s positive trend. Profitability metrics such as EPS and PAT have shown contraction, while ROCE and interest coverage ratios remain modest.
Despite these factors, the company’s sales growth and manageable debt levels provide some balance to the overall financial picture. The stock’s valuation metrics suggest it is trading at a discount relative to peers, reflecting the market’s cautious stance.
Market dynamics on 1 December 2025 saw the Sensex experience volatility but maintain proximity to its 52-week high, while Agarwal Industrial Corporation’s stock continued to trade below all major moving averages, signalling ongoing pressure on the share price.
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